Virgin Media 2007 Annual Report Download - page 15

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Service Provider—This sales channel is divided into vertical segments, including fixed and mobile
network operators, system integrators, or SIs, and internet service providers, or ISPs, reflecting
the differing network requirements of each type of service provider. This sales channel
predominantly provides data connectivity both in terms of local access (tail-ends) and core
networks. Being well placed to leverage our extensive network asset, the Service Provider sales
channel has demonstrated strong underlying growth in providing customers with backhaul
solutions, which are high bandwidth connections between a site and the core network. We
believe significant market demand exists for such services driven by local loop unbundlers
transporting data away from BT exchanges, as well as mobile operators requiring higher
bandwidth connections from mobile masts as a result of growth in 3G and data services.
In addition to network services, a small number of significant contracts drive financial
performance, such as local area network cabling projects in Business Markets, such as the new
Terminal 5 at Heathrow Airport, and network builds for other operators in Service Provider where
revenue peaks during construction phases and lower ongoing rentals are received during the
maintenance phase.
Products and Services
ntl:Telewest Business offers a wide portfolio of voice and data services, from analog telephony to
managed data networks and applications. Our product strategy is focused on delivering managed
services, such as customer contact solutions, national Ethernet and internet protocol virtual private
networks, or IP VPN, products which as a result, have experienced strong growth since 2005.
We enhance product development through an internal program we have developed that drives
regular and timely deliverables that are aligned with the needs of target customers. This clear focus has
helped to maintain our leadership in Ethernet services in 2007, innovate in new areas such as IP CCTV,
and drive cost-base improvements in more traditional services.
Voice Products and Services
Outbound and Inbound Voice: We offer a complete suite of voice products ranging from analog
and digital services to converged IP telephony solutions. Strong regional presence and expertise
has driven market share in products such as Centrex, where local government and private sector
organizations benefit from a managed platform that delivers a uniform suite of features across
multiple sites. Developments like IP Multimedia, which offers functionality such as
desktop-to-desktop video conferencing, represent the next generation of voice services in a
converging IP world.
Data Products and Services
Converged Solutions: By using a single network to transport voice, data and video, our customers
can benefit from cost synergies, flexibility and control. The services within our converged
solutions portfolio enable this with products such as IP VPN. Given our network ownership and
extensive reach, we are able to link sites across the U.K. using a wide range of access
technologies and with developments such as eight classes of service (currently more than offered
by any other U.K. service provider) traffic can be discretely segmented into up to eight
categories and prioritized to ensure that more time sensitive (e.g. voice) or critical application
data is transported with priority.
Ethernet: As a market leader in Ethernet solutions in the U.K., ntl:Telewest Business was the
first European service provider to be independently tested and accredited by the Metro Ethernet
Forum, or MEF. MEF9 and MEF14 accreditation demonstrates our ability to deploy
‘point-to-point’ and ‘any-to-any’ Ethernet networks that can be installed and scaled effectively,
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